Daily ETF Watch: Schwab Cuts Expense Ratio

Daily ETF Watch: Schwab Cuts Expense Ratio

‘Chuck’ is once again taking his fees down a notch.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

‘Chuck’ is once again taking his fees down a notch.

Charles Schwab, the firm known for undercutting its competitors on price, has cut the expense ratio on the Schwab International Equity ETF (SCHF | B-96) from 0.09 percent, or $9 for every $10,000 invested, to 0.08 percent effective April 18, according to a regulatory filing.

The move makes SCHF cheaper than the Vanguard FTSE Developed Markets ETF (VEA | A-91) and the cheapest choice for investors in the developed markets ex-U.S. segment, according to data compiled by ETF.com Analytics. The exchange-traded funds can also be traded commission free by Schwab clients.

SCHF was part of a larger group of Schwab ETFs on which expense ratios were cut last September. At the time, Walt Bettinger, chief executive officer of the San Francisco-based firm, said in a monthly telephone conference with journalists: “We’re not going to stop here,” stressing the price cuts weren’t a temporary measure.

Total U.S.-listed assets now stand at more than $1.738 trillion. Schwab currently manages $19.3 billion of those assets and is the No. 11 ETF provider, according to data compiled by ETF.com Analytics.

Filing

WisdomTree has replaced Old Mutual Global Index Trackers (Proprietary) Limited with Mellon Capital Management Corporation as the subadvisor to the China Dividend ex-Financials Fund (CHXF | C-35), effective Feb. 1, 2014, according to a regulatory filing.

There will be no increase in fees to the fund or its shareholders as a result of the switch.

CHXF was launched in September 2012 and currently has $17.7 million in total assets. The fund currently has a heightened risk of closure, according to an ETF.com analyst segment fund report.

 

Hung Tran is a former staff writer for etf.com.